Looking to find the best locations to invest in property? Consider these 4 KEY elements.
February 23, 2023
You know what they say – Location, location, location…
The key to long term equity gain is as simple as those three words. Well, actually, that one word, three times!
When it comes to property, there’s nothing more important than location.
Often though, investors and home buyers alike can slip up when it comes to finding the right location to purchase. It can be easy to put all your faith into a little tip off from a friend or family member, saying ‘Ooh, yes you should definitely invest in *insert random friend’s childhood town*’, or ‘I know the BEST place no one knows about’.
And yes, it might be done with the intention of being supportive and helpful, but can you really make an informed decision based upon it?
Instead of tip-offs from our family and friends, at InvestHer, we consider 4 key economic and statistic-centred elements when it comes to finding the right location for a property purchase.
Let’s jump in!
As a result of the current world we live in, we have seen some incredibly interesting population growth here in Australia, not just on a national level, but on a state by state basis too.
When it comes to population growth, it inherently means more demand for properties to be supplied to the market.
The first factor in population growth is one you may have seen recently in the news – overseas migration. With a shortage of skilled workers in Australia, people are coming from far and wide to experience the country and settle down with their families.
Alongside this, off the back of the pandemic, where international students were forced to return home to study online, we are now seeing a huge return in face to face students, coming back after a few years of studying from home. You may have heard the recent news from China, where around 40,000 enrolled students have been forced to return to Australia to study.
To us, this means one thing – increased DEMAND for somewhere to live.
With this, it can be easy to say, OK, the population is going up, so I can buy ANYWHERE’. As much as you may get lucky in the long term, this isn’t the most sustainable outlook. We find it incredibly beneficial to consider population change within certain smaller areas, such as suburb by suburb or city by city. Where is population growth sustainable?
An excellent example of this targeted growth occurred throughout 2021, when South-East QLD saw a net increase of around 1100 people PER WEEK. This huge influx of people led to major demand increases, and major price increases. Ultimately, as a result of this, the Gold Coast recorded a 26.7% jump in house prices throughout 2021.
Understandably, this wasn’t the only factor driving these price increases, but it’s certainly something to keep in the front of your mind– population growth can be a game changer.
As you might already know, we LOVE long term investment – it’s what builds wealth and helps us reach those financial goals.
Economic indicators such as unemployment rates, household savings, average weekly earnings and the consumer price index are all great measures of a state or region’s economic potential in the long term. We also love looking at employment growth, as this highlights a true increase in the job market, ensuring demand in the area is growing.
Property-specific economic indicators, such as auction clearance rates, rental price increases and rental vacancy rates also provide some incredibly helpful and important insight into how the economy is functioning within a particular area.
When it comes to finding the right location to invest in property, we’re all about quality infrastructure.
For a location to be a high quality investment opportunity, it must have a strong and growing presence of infrastructure. We love looking for a combination of great public transport, hospitals, sporting venues, and high quality roads.
Why?
Because it makes for a great place to live – increasing demand for you as a property investor.
There are two regions in particular that spark our interest when it comes to large-scale infrastructure right now. Across Australia, there is plenty of growth occurring – however the upcoming events across Melbourne and South-East Queensland are proving to be quite a boost for their respective local economies.
According to Victorian Regional Development Minister Mary-Anne Thomas, Melbourne’s Commonwealth Games in 2026 is projected to inject $3 billion into the local economy. With it, it’s providing the equivalent of around 600 new full time jobs. With hubs around the state throughout the Games, this growth will be felt not just in Melbourne, but also regional hubs including Geelong, Shepparton, Bendigo and Ballarat.
We’re also super excited for Brisbane’s first Olympics, coming up in 2032. Queensland’s Premier, Annastacia Palaszczuk announced that the Games will provide economic growth to the tune of $8.1 billion, which on top of the already huge growth in the region, is AMAZING.
From a property investment perspective, these two major events will bring plenty of development, from apartments, to arenas and everything in between. An influx of cash into these economies will continue to spur growth and demand for high quality properties – which we LOVE for our clients.
Whilst long term equity gain is the key to property investment, it’s safe to say we always want our investment properties to have tenants in them.
And not just any old tenant – ideally HIGH QUALITY tenants who appreciate living in a great home.
This is where demographics come in to play. Australia is a place of many different demographics, whether it be culture, race, socio economic or age – and it’s truly what makes this country great.
When it comes to investment, identifying the demographics that help you to create equity is key. This depends slightly on the type of place you’re investing in, and the price range that tenants will be paying. So by identifying the ideal demographic, for example a young professional family, or maybe a middle class couple, you are able to understand whether an area will suit you or not when it comes to investment strategy.
At the end of the day, these four elements provide the base recipe for high quality, long term property investment. Just remember though – as important as numbers and concepts are, they mean nothing without a sturdy plan that aligns exactly to your unique situation and goals. At InvestHer, we’re all about providing you with a tangible investment plan that carefully considers YOU.
Want to learn more about our tailored Property Plans? Send us a DM or give us a call on 0422 991 086, we’d love to help!
The key to long term equity gain is as simple as those three words. Well, actually, that one word, three times!
When it comes to property, there’s nothing more important than location.
Often though, investors and home buyers alike can slip up when it comes to finding the right location to purchase. It can be easy to put all your faith into a little tip off from a friend or family member, saying ‘Ooh, yes you should definitely invest in *insert random friend’s childhood town*’, or ‘I know the BEST place no one knows about’.
And yes, it might be done with the intention of being supportive and helpful, but can you really make an informed decision based upon it?
Instead of tip-offs from our family and friends, at InvestHer, we consider 4 key economic and statistic-centred elements when it comes to finding the right location for a property purchase.
Let’s jump in!
Population growth
As a result of the current world we live in, we have seen some incredibly interesting population growth here in Australia, not just on a national level, but on a state by state basis too.
When it comes to population growth, it inherently means more demand for properties to be supplied to the market.
The first factor in population growth is one you may have seen recently in the news – overseas migration. With a shortage of skilled workers in Australia, people are coming from far and wide to experience the country and settle down with their families.
Alongside this, off the back of the pandemic, where international students were forced to return home to study online, we are now seeing a huge return in face to face students, coming back after a few years of studying from home. You may have heard the recent news from China, where around 40,000 enrolled students have been forced to return to Australia to study.
To us, this means one thing – increased DEMAND for somewhere to live.
With this, it can be easy to say, OK, the population is going up, so I can buy ANYWHERE’. As much as you may get lucky in the long term, this isn’t the most sustainable outlook. We find it incredibly beneficial to consider population change within certain smaller areas, such as suburb by suburb or city by city. Where is population growth sustainable?
An excellent example of this targeted growth occurred throughout 2021, when South-East QLD saw a net increase of around 1100 people PER WEEK. This huge influx of people led to major demand increases, and major price increases. Ultimately, as a result of this, the Gold Coast recorded a 26.7% jump in house prices throughout 2021.
Understandably, this wasn’t the only factor driving these price increases, but it’s certainly something to keep in the front of your mind– population growth can be a game changer.
Economic growth
As you might already know, we LOVE long term investment – it’s what builds wealth and helps us reach those financial goals.
Economic indicators such as unemployment rates, household savings, average weekly earnings and the consumer price index are all great measures of a state or region’s economic potential in the long term. We also love looking at employment growth, as this highlights a true increase in the job market, ensuring demand in the area is growing.
Property-specific economic indicators, such as auction clearance rates, rental price increases and rental vacancy rates also provide some incredibly helpful and important insight into how the economy is functioning within a particular area.
Infrastructure Growth
When it comes to finding the right location to invest in property, we’re all about quality infrastructure.
For a location to be a high quality investment opportunity, it must have a strong and growing presence of infrastructure. We love looking for a combination of great public transport, hospitals, sporting venues, and high quality roads.
Why?
Because it makes for a great place to live – increasing demand for you as a property investor.
There are two regions in particular that spark our interest when it comes to large-scale infrastructure right now. Across Australia, there is plenty of growth occurring – however the upcoming events across Melbourne and South-East Queensland are proving to be quite a boost for their respective local economies.
According to Victorian Regional Development Minister Mary-Anne Thomas, Melbourne’s Commonwealth Games in 2026 is projected to inject $3 billion into the local economy. With it, it’s providing the equivalent of around 600 new full time jobs. With hubs around the state throughout the Games, this growth will be felt not just in Melbourne, but also regional hubs including Geelong, Shepparton, Bendigo and Ballarat.
We’re also super excited for Brisbane’s first Olympics, coming up in 2032. Queensland’s Premier, Annastacia Palaszczuk announced that the Games will provide economic growth to the tune of $8.1 billion, which on top of the already huge growth in the region, is AMAZING.
From a property investment perspective, these two major events will bring plenty of development, from apartments, to arenas and everything in between. An influx of cash into these economies will continue to spur growth and demand for high quality properties – which we LOVE for our clients.
Demographics
Whilst long term equity gain is the key to property investment, it’s safe to say we always want our investment properties to have tenants in them.
And not just any old tenant – ideally HIGH QUALITY tenants who appreciate living in a great home.
This is where demographics come in to play. Australia is a place of many different demographics, whether it be culture, race, socio economic or age – and it’s truly what makes this country great.
When it comes to investment, identifying the demographics that help you to create equity is key. This depends slightly on the type of place you’re investing in, and the price range that tenants will be paying. So by identifying the ideal demographic, for example a young professional family, or maybe a middle class couple, you are able to understand whether an area will suit you or not when it comes to investment strategy.
At the end of the day, these four elements provide the base recipe for high quality, long term property investment. Just remember though – as important as numbers and concepts are, they mean nothing without a sturdy plan that aligns exactly to your unique situation and goals. At InvestHer, we’re all about providing you with a tangible investment plan that carefully considers YOU.
Want to learn more about our tailored Property Plans? Send us a DM or give us a call on 0422 991 086, we’d love to help!
